Mexican exports increased thanks to rising demand for Mexico-made automotive and agribusiness products. According to INEGI, automotive exports increased 12.6 percent in July. Additionally, several players aim high when forecasting their growth in the country. Peugeot hopes to market 10,000 units in 2019 after record-breaking sales in 1H19 and Grupo Flecha Amarilla will invest US$25 million to renew its fleet and safety technology. In other news, ANPACT called for adjusting the new emissions regulations outlined in NOM-044 to allow older motorization technologies until a nationwide supply of ultra-low sulfur diesel (ULSD) is secured.
In local news, light-vehicle sales in the Bajio region contracted in the first seven months of 2019. As the Corregidora city government prepares to cope with the demands created by Toyota’s new assembly plant in neighboring Apaseo el Grande, a new mobility regulation could keep heavy cargo trucks off Queretaro’s streets to reduce traffic. In San Luis Potosi, a new supplier of machining and forged components broke ground for its first plant in Mexico and in Jalisco, Bosch and the state government have joined efforts to boost the dual-education model.
As the industry prepares for a major shift toward the car of the future, OEMs Toyota and Suzuki have invested in each other to strengthen their technological partnership, which includes the development of systems for self-driving vehicles. In China, Tesla cars were exempted from paying the 10 percent tax levied on new-vehicle sales.
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A Dynamic Automotive Sector
The automotive and agribusiness sectors boosted Mexico’s exports in July. Automotive exports increased 12.6 percent in that month.
Peugeot aims for a greater share in Mexico’s light vehicle market. After reaching double-digit growth in sales during 1H19, the company aims to sell 10,000 cars by the end of 2019.
Bus line group Grupo Flecha Amarilla plans to invest US$25 million by 2020 to renew its fleet and safety technology. The company aims for greater profitability in the midst of a decelerating economy.
New Opportunities for State Economies
Light-vehicle sales dropped 5.3 percent in the Bajio region in the first seven months of 2019. Guanajuato suffered the largest sales contraction with 11.8 percent fewer units marketed compared to the same period last year.
A new mobility regulation was approved in Queretaro to reduce traffic and its environmental impact. Cargo trucks will not be allowed on city roads between 6:00 and 22:00.
Chinese supplier Industrial Impro broke ground for the construction of a new plant in San Luis Potosi. The company will offer foundry parts and machining for automotive and aerospace clients.
Jalisco and Bosch bet on dual education to develop human capital in Guadalajara. Bosch signed an agreement with the state government to train local talent.
Toward the Car of the Future
Toyota and Suzuki have teamed up to strengthen their technological association to develop self-driving vehicles. Both companies will purchase a share of each other as part of this strategy.
In China, Tesla was exempted from the 10 percent tax that the government levies on vehicle sales following Elon Musk’s visit to the country.